Y5

IV. Use appropriate method of Analysis as noted (10 pts each) 1. Which Alternate (A or B below) would you recommend based on Life Cycle Cost Analysis if the interest rate was 10%? (Hint: Choose correct method of analysis: Total NPV-net present value or total EUA W-equivalent uniform annual worth) Show your work and place A or B in the box Alternate A Alternate B Choice: Initial cost $130,000 $144,000 Annual revenue $60,000/yr $70,000/yr Annual O&M $45,000/yr $55,000/yr Life 12 years 15 years Salvage $19,000 $2,000